the best product and service. Newer technology is brought into the market place everyday and there is a lack of competent IT professionals that understand how and why this technology works. This gives those companies that have the resources to hire competent IT professionals with an understanding of the newer technology the ability to differentiate themselves from the rest of the marketplace. Software and technology changes go hand in hand. As new technology is developed, system software has to be developed to enable the technology. The new technology is also providing the capacity for new application software and tools that are being developed to perform business functions and data management. Capacity versus Demand The personal computer and imaging industry have been in an over-capacity situation for most of its existence. There are many vendors competing for the same buyers and vendors need to convince buyers that their product has an advantage over the competition. The e-services, software, and network servers product segments have experienced greater demand and are not at the point of excess capacity. Entry and Exit Barriers Entry barriers into the diversified computer industry are surmountable. Components for PCs and imaging products are easily attainable through many suppliers. Suppliers generally give volume discounts and the small newcomer must compete with larger established vendors who benefit from economies of scale. The ability to provide quality service and support to the customer is another barrier. Buyers are becoming accustomed to having support from the vendor, at any time of the day, after the sale. This requires having knowledgeable staff available to handle customer calls. Newcomers also have to overcome brand recognition and the reputation of established vendors. Exit barriers vary depending on the company. Companies that emphasize one product will cease to exist if they are unable to be competitive with other prod...
